A survey of criteria for a selection of logistics service providers: A case of Thailand's automotive industry

Abstract

This study aims to investigate the criteria that the automotive manufacturing companies currently consider when selecting a logistics service provider; and to prioritise the importance level of those criteria based on service buyers' perspectives. The criteria were synthesised from the relevant literature review, and they were then used to develop the questionnaire. In this current study, the questionnaire was divided into two parts: the manufacturers' current criteria for considering the service provider: and, the levels of importance for the criteria. It was then sent to five large-scale manufacturers in the automotive industry in Thailand. Following up with questionnaire responses, the researchers also conducted an interview with each participating manufacturer to elicit additional insightful information. According to the results, there were seven criteria that all five manufacturers collectively used to consider the logistics service: 1) Price, 2) Relationship, 3) Management system, 4) Flexibility, 5) Delivery, 6) Physical facilities, equipment and technology, and 7) Service areas. In this regard, the most important criteria were Price and Delivery, respectively. For logistics service providers, the findings of the study might be of use to design strategic planning, to improve their organization for a future service providing, and to maximize the competitive advantage. Additionally, the government could also implement these study findings to formulate the policy to support the logistics industry in Thailand to be able to grow sustainably and compete in the global market.